Core Insights - Northann Corp. has announced a strategic partnership with Adornus Cabinetry to combine 3D printing technologies with high-quality cabinetry design and manufacturing [1][2] Group 1: Partnership Details - The partnership aims to drive innovations in materials and design processes, resulting in sustainable cabinetry solutions that are both aesthetically pleasing and functional [2] - Collaborative projects are expected to commence in Q3 of 2024, with further details to be disclosed soon [3] Group 2: Company Background - Northann specializes in 3D-printed flooring solutions and operates across the full spectrum of additive manufacturing, utilizing recycled ocean plastics [4] - The company offers a range of proprietary solutions, including Infinite Glass, DSE, TruBevel, and MattMaster, primarily in North America and Europe [4] Group 3: Economic and Sustainability Impact - The partnership is committed to sustainable practices, focusing on eco-friendly materials and processes [7] - It is anticipated to bolster the local economy in South Carolina by creating jobs and utilizing local resources [7]

Financial Performance - The company completed its initial public offering of 1,380,000 shares at an offering price of $5.00 per share in October 2023[96]. - In the fiscal year ended December 31, 2023, the cost of raw materials accounted for 25% of total revenue, while shipping costs accounted for 5%[105]. - Two customers accounted for nearly 91% of the company's revenues in the fiscal year ended December 31, 2023, compared to nearly 30% in 2022[128]. - The company recorded $248,127 and $1,667,355 as revenue from unearned revenue during the years ended December 31, 2023 and 2022, respectively[115]. - The company’s revenue primarily consists of wholesale and retail sales of vinyl flooring products in the U.S. and Canada[97]. Cost Structure - The company raised product prices to mitigate the impact of rising costs due to inflation and supply chain disruptions[103]. - Direct material costs represent over 90% of the total cost of revenue, indicating high sensitivity to material availability and pricing[98]. - During the fiscal year ended December 31, 2023, three suppliers accounted for 32% of the Company's cost of revenues, a decrease from 68% in 2022[159]. Customer and Supplier Concentration - As of December 31, 2023, five customers accounted for 72% of the Company's accounts receivable, down from 90% in 2022[158]. - As of December 31, 2023, no supplier accounted for over 10% of the Company's accounts payable, compared to one supplier accounting for 10% in 2022[160]. Market Conditions - The company has experienced significant competition in the U.S. and Canada markets, impacting its profitability and market share[102]. - The COVID-19 pandemic has created uncertainties affecting market demand and supply chain stability, which the company continues to evaluate[104]. Financial Management - The company has slowed down investments in low profit-margin products to manage financial risks[103]. - Substantially all of the Company's cash as of December 31, 2023, and 2022, were held by major financial institutions in the PRC, which are considered to have high credit quality[161]. - The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses, which have historically been within management's expectations[162].

Revenue Performance - Revenue for the nine months ended September 30, 2023, was recognized at $1,667,355, compared to $10 for the same period in 2022[154]. - Revenues for the three months ended September 30, 2023, were $2,160,258, a decrease of $3,320,708 or 61% from $5,480,966 in the same period of 2022[167]. - Revenues for the nine months ended September 30, 2023, were $9,436,881, a decrease of $10,370,670 or 52% from $19,807,551 in the same period of 2022[178]. Cost and Expenses - The cost of direct materials accounted for over 90% of the total cost of revenue, indicating a significant dependency on material availability[146]. - Cost of revenues increased to $3,423,295 for the three months ended September 30, 2023, compared to $2,615,972 in 2022, primarily due to increased material costs[169]. - Gross profit was negative $1,263,037 for the three months ended September 30, 2023, compared to a gross profit of $2,864,994 in 2022, resulting in a gross margin decrease from 52.3% to (58.5%)[170]. - Gross profit for the nine months ended September 30, 2023, was $889,668, compared to $4,955,678 in 2022, with gross margin decreasing from 25% to 9% due to rising material costs[181]. - General and administrative expenses decreased by $1,155,613 to $354,902 for the three months ended September 30, 2023, primarily due to the absence of bad debt provisions that were recorded in the prior year[172]. - General and administrative expenses decreased by 46.93% to $1,094,228 for the nine months ended September 30, 2023, from $2,061,898 for the same period in 2022, primarily due to the absence of bad debt provision[184]. - Selling expenses decreased by $283,410 to $538,672 for the nine months ended September 30, 2023, from $822,082 in the same period in 2022, largely due to reduced freight insurance costs[182]. - The company incurred tariffs of $195,667 during the nine months ended September 30, 2023, down from $485,806 in the same period of 2022, reflecting the decrease in revenue[180]. Net Income and Loss - Net loss for the three months ended September 30, 2023, was $2,921,613, compared to a net income of $499,300 in 2022, driven by decreased revenue and increased expenses related to convertible notes[176]. - The net loss for the nine months ended September 30, 2023, was $(3,433,234), compared to a net income of $234,077 for the same period in 2022[186]. Cash Flow - Cash as of September 30, 2023, was $90,527, with operations primarily financed through business operations and borrowings[187]. - Net cash used in operating activities was $(1,447,563) for the nine months ended September 30, 2023, an improvement from $(5,220,616) for the same period in 2022[190]. - Net cash used in investing activities was $(7,642) for the nine months ended September 30, 2023, compared to $282,633 provided by investing activities for the same period in 2022[192]. - Net cash provided by financing activities was $1,843,913 for the nine months ended September 30, 2023, compared to $1,291,788 for the same period in 2022[193]. Operational Insights - The company has established multiple subsidiaries for manufacturing, distribution, and R&D, including Northann Building Solutions LLC and Crazy Industry, enhancing operational efficiency[140][142]. - The company has raised product prices to mitigate the impact of rising costs due to inflation and supply chain disruptions[149]. - The company’s operations have been adversely affected by global supply chain disruptions and rising inflation rates, impacting financial performance[149]. - The company recognizes revenue at the point of delivery, ensuring that control of the product is transferred to the customer[150]. - The company’s contracts typically do not allow for returns or refunds, which helps stabilize revenue recognition[150]. - The company has licensed patents to other manufacturers, aiming to promote its technologies in the flooring industry[145]. - The company has not accrued any liability, interest, or penalties related to uncertain tax positions for the nine months ended September 30, 2023[164]. - The company’s revenue recognition follows a five-step model as prescribed under ASU No. 2014-09, ensuring compliance with accounting standards[148]. Research and Development - Research and development expenses were $99,161 for the three months ended September 30, 2023, down from $383,289 in the same period last year, reflecting reduced spending on technology development[174]. - Research and development expenses were $609,476 for the nine months ended September 30, 2023, down from $1,299,301 for the same period last year[185]. Lease and Financing - Operating lease expenses for the nine months ended September 30, 2023, were $21,506, compared to $20,371 for the same period in 2022[196]. - The company believes its current cash levels will meet anticipated cash needs for at least the next twelve months but may seek additional resources for investments or acquisitions[188].

As filed with the U.S. Securities and Exchange Commission on September 8, 2023. Registration No. 333-273246 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT No. 4 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Northann Corp. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) Nevada 3089 88-1513509 (Primary Standard Industrial Classification Code No.) (I.R.S. Employer Identification No.) c ...

As filed with the U.S. Securities and Exchange Commission on September 1, 2023. Registration No. 333-273246 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT No. 3 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Northann Corp. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) Nevada 3089 88-1513509 (Primary Standard Industrial Classification Code No.) (I.R.S. Employer Identification No.) c ...

As filed with the U.S. Securities and Exchange Commission on August 24, 2023. Registration No. 333-273246 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT No. 2 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Northann Corp. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) Nevada 3089 88-1513509 (Primary Standard Industrial Classification Code No.) (I.R.S. Employer Identification No.) c/o ...

As filed with the U.S. Securities and Exchange Commission on July 27, 2023. Registration No. 333-273246 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT No. 1 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Northann Corp. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) Nevada 3089 88-1513509 (Primary Standard Industrial Classification Code No.) (I.R.S. Employer Identification No.) c/o N ...

As filed with the U.S. Securities and Exchange Commission on July 14, 2023. Registration No. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Northann Corp. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) Nevada 3089 88-1513509 (Primary Standard Industrial Classification Code No.) (I.R.S. Employer Identification No.) c/o Northann Distribution Center In ...